Indiana 2022 Regular Session

Indiana Senate Bill SB0395 Compare Versions

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22 Introduced Version
33 SENATE BILL No. 395
44 _____
55 DIGEST OF INTRODUCED BILL
66 Citations Affected: IC 6-3.6-9-20; IC 25-0.5; IC 25-20.4.
77 Synopsis: Licensing of independent electrical contractors. Establishes
88 the Indiana commission on independent electrical contractors
99 (commission). Specifies various forms of electrical work that are not
1010 subject to regulation by the commission. Provides for the issuance of
1111 a statewide license for independent electrical contractors. Specifies
1212 duties and privileges associated with holding a statewide license.
1313 Specifies powers and duties of political subdivisions with respect to the
1414 statewide license. Provides that the penalty imposed upon a political
1515 subdivision that fails to recognize and honor a statewide license is the
1616 intercept of part of the local income taxes that would be distributed to
1717 the political subdivision.
1818 Effective: July 1, 2022.
1919 Niemeyer
2020 January 11, 2022, read first time and referred to Committee on Commerce and Technology.
2121 2022 IN 395—LS 7125/DI 92 Introduced
2222 Second Regular Session of the 122nd General Assembly (2022)
2323 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2424 Constitution) is being amended, the text of the existing provision will appear in this style type,
2525 additions will appear in this style type, and deletions will appear in this style type.
2626 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2727 provision adopted), the text of the new provision will appear in this style type. Also, the
2828 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2929 a new provision to the Indiana Code or the Indiana Constitution.
3030 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3131 between statutes enacted by the 2021 Regular Session of the General Assembly.
3232 SENATE BILL No. 395
3333 A BILL FOR AN ACT to amend the Indiana Code concerning
3434 professions and occupations.
3535 Be it enacted by the General Assembly of the State of Indiana:
3636 1 SECTION 1. IC 6-3.6-9-20 IS ADDED TO THE INDIANA CODE
3737 2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3838 3 1, 2022]: Sec. 20. Revenue that would otherwise be distributed to
3939 4 a civil taxing unit under this chapter may be intercepted under
4040 5 IC 25-20.4-7-4. The auditor of state shall withhold the amount
4141 6 intercepted from the monthly distribution made under section 12
4242 7 of this chapter to the county treasurer of the county in which the
4343 8 civil taxing unit is located. The auditor of state shall retain the
4444 9 amount intercepted in escrow for the civil taxing unit and pay it to
4545 10 the fiscal officer of the civil taxing unit upon receiving notice from
4646 11 the commission on independent electrical contractors that the civil
4747 12 taxing unit is in compliance with IC 25-20.4-7 and is entitled to
4848 13 receive the intercepted revenue.
4949 14 SECTION 2. IC 25-0.5-3-13.5 IS ADDED TO THE INDIANA
5050 15 CODE AS A NEW SECTION TO READ AS FOLLOWS
5151 16 [EFFECTIVE JULY 1, 2022]: Sec. 13.5. IC 25-1-2-6(b) applies to the
5252 17 Indiana commission on independent electrical contractors.
5353 2022 IN 395—LS 7125/DI 92 2
5454 1 SECTION 3. IC 25-0.5-4-14.5 IS ADDED TO THE INDIANA
5555 2 CODE AS A NEW SECTION TO READ AS FOLLOWS
5656 3 [EFFECTIVE JULY 1, 2022]: Sec. 14.5. The Indiana commission on
5757 4 independent electrical contractors (IC 25-20.4-3) is a board under
5858 5 IC 25-1-4.
5959 6 SECTION 4. IC 25-0.5-7-7.5 IS ADDED TO THE INDIANA
6060 7 CODE AS A NEW SECTION TO READ AS FOLLOWS
6161 8 [EFFECTIVE JULY 1, 2022]: Sec. 7.5. The Indiana professional
6262 9 licensing agency shall perform administrative functions, duties,
6363 10 and responsibilities for the Indiana commission on independent
6464 11 electrical contractors (IC 25-20.4-3) under IC 25-1-6-3(a).
6565 12 SECTION 5. IC 25-0.5-8-10.5 IS ADDED TO THE INDIANA
6666 13 CODE AS A NEW SECTION TO READ AS FOLLOWS
6767 14 [EFFECTIVE JULY 1, 2022]: Sec. 10.5. An occupation for which a
6868 15 statewide license is issued by the Indiana commission on
6969 16 independent electrical contractors under IC 25-20.4 is a regulated
7070 17 occupation under IC 25-1-7.
7171 18 SECTION 6. IC 25-20.4 IS ADDED TO THE INDIANA CODE AS
7272 19 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
7373 20 2022]:
7474 21 ARTICLE 20.4. INDEPENDENT ELECTRICAL
7575 22 CONTRACTORS
7676 23 Chapter 1. General Provisions
7777 24 Sec. 1. This article does not apply to work done by any of the
7878 25 following:
7979 26 (1) An employee of an electric utility, a water utility, a natural
8080 27 gas utility, a communications service provider (as defined by
8181 28 IC 8-1-2.6-13), or a video service provider described in
8282 29 IC 8-1-34.
8383 30 (2) A railroad company (as defined by 6-1.1-8-2).
8484 31 (3) A contractor who services the construction and
8585 32 maintenance of power lines or substations of an entity
8686 33 described in subdivision (1) that is engaged in providing
8787 34 electricity, communications service, or video service.
8888 35 (4) A federally licensed radio or television broadcast station.
8989 36 (5) A private broadcasting engineer certified by the Society of
9090 37 Broadcast Engineers.
9191 38 (6) A contractor engaged in the design, installation, erection,
9292 39 repair, maintenance, or alteration of:
9393 40 (A) class two or class three remote control, signaling, or
9494 41 power-limited circuits;
9595 42 (B) optical fiber cables or other cabling; or
9696 2022 IN 395—LS 7125/DI 92 3
9797 1 (C) communications circuits as defined in the National
9898 2 Electrical Code for voice, video, audio, and data signals in
9999 3 residential or commercial premises, including raceways.
100100 4 Sec. 2. This article does not prohibit a political subdivision from
101101 5 doing any of the following:
102102 6 (1) Implementing or enforcing an electrical code in
103103 7 accordance with IC 22-13.
104104 8 (2) Issuing a license to an electrical contractor that is valid for
105105 9 performing work in the political subdivision.
106106 10 (3) Issuing electrical contracting permits.
107107 11 (4) Inspecting the work of a licensee.
108108 12 (5) Licensing electricians as long as the qualifications for the
109109 13 license are based upon professional experience and passing a
110110 14 nationally accredited electrical assessment examination that
111111 15 is administered on a routine and accessible schedule.
112112 16 Chapter 2. Definitions
113113 17 Sec. 1. "Certifying entity" means a nongovernmental agency or
114114 18 association that certifies individuals who have completed academic
115115 19 and training requirements.
116116 20 Sec. 2. "Commission" means the Indiana commission on
117117 21 independent electrical contractors established by IC 25-20.4-3-1.
118118 22 Sec. 3. "Electrical contracting" means engaging in the business
119119 23 of installing, erecting, or maintaining electrical wiring, fixtures,
120120 24 apparatus, equipment, devices, or components, regardless of
121121 25 voltage, that are used for generating, transmitting, or using
122122 26 electricity.
123123 27 Sec. 4. "Electrical contractor" means a person:
124124 28 (1) engaged in electrical contracting; and
125125 29 (2) performing work that is subject to this article.
126126 30 Sec. 5. "Licensee" means an electrical contractor holding a
127127 31 statewide license issued under this article.
128128 32 Sec. 6. "Local license" means a license issued to an electrical
129129 33 contractor by a political subdivision (as defined by IC 36-1-2-13).
130130 34 Sec. 7. "Person" means an individual, an association, a
131131 35 partnership, a limited partnership, a limited liability company, a
132132 36 corporation, or a similar entity.
133133 37 Sec. 8. "Statewide license" means a license issued under this
134134 38 article authorizing a licensee to engage in electrical contracting at
135135 39 any location in Indiana.
136136 40 Chapter 3. Indiana Commission on Independent Electrical
137137 41 Contractors
138138 42 Sec. 1. The Indiana commission on independent electrical
139139 2022 IN 395—LS 7125/DI 92 4
140140 1 contractors is established.
141141 2 Sec. 2. (a) The commission consists of five (5) members
142142 3 appointed by the governor.
143143 4 (b) Subject to IC 25-1-6.5-3, each member appointed to the
144144 5 commission must be a citizen and resident of Indiana. The
145145 6 additional qualifications for membership on the commission are as
146146 7 follows:
147147 8 (1) Two (2) of the members must have been actively engaged
148148 9 in electrical contracting for at least five (5) years immediately
149149 10 before the date of the member's appointment or have had at
150150 11 least ten (10) years experience in electrical contracting.
151151 12 (2) Two (2) of the members must have been employed as
152152 13 journeymen electricians for at least five (5) years immediately
153153 14 before the date of the member's appointment.
154154 15 (3) One (1) member represents the general public and may not
155155 16 have any association with electrical contracting other than as
156156 17 a consumer.
157157 18 (c) The term of each member of the commission is four (4) years
158158 19 in accordance with IC 25-1-6.5-2.
159159 20 (d) Not more than three (3) members of the commission may be
160160 21 members of the same political party.
161161 22 (e) A member may be removed under IC 25-1-6.5-4.
162162 23 Sec. 3. A member of the commission is not entitled to a salary,
163163 24 but is entitled to reimbursement for traveling and other expenses
164164 25 as provided in the state travel policies and procedures established
165165 26 by the department of administration and approved by the state
166166 27 budget agency.
167167 28 Sec. 4. The commission shall annually organize and select one
168168 29 (1) of the members as chairperson and one (1) of the members to
169169 30 serve as secretary. The officers selected under this section shall
170170 31 serve for a term of one (1) year.
171171 32 Sec. 5. The commission, through the licensing agency, shall keep
172172 33 a record of all its proceedings, transactions, communications,
173173 34 official acts, and records.
174174 35 Sec. 6. The commission shall do the following:
175175 36 (1) Adopt and use an official seal.
176176 37 (2) Prescribe the form of the statewide license issued under
177177 38 IC 25-20.4-5.
178178 39 (3) Issue statewide licenses to applicants who qualify and
179179 40 comply with the provisions of this article and pay required
180180 41 license fees.
181181 42 (4) Adopt rules in accordance with IC 4-22-2 that establish
182182 2022 IN 395—LS 7125/DI 92 5
183183 1 standards for independent electrical contractors.
184184 2 Sec. 7. The commission may:
185185 3 (1) adopt and promulgate rules and regulations for its
186186 4 guidance and for the regulation of its business and procedure
187187 5 consistent with the provisions of this article and in the manner
188188 6 provided in IC 4-22-2;
189189 7 (2) enter into contracts and authorize expenditures as its
190190 8 duties require, subject to the provisions of this article and
191191 9 IC 25-1-6; and
192192 10 (3) do all things necessary for carrying into effect the
193193 11 provisions of this article.
194194 12 Sec. 8. (a) The secretary shall call each meeting of the
195195 13 commission:
196196 14 (1) as directed by the chairperson or upon request in writing
197197 15 by two (2) members; and
198198 16 (2) at the time and place within Indiana as the commission
199199 17 business may require.
200200 18 (b) The secretary shall provide sufficient notice of each meeting
201201 19 to permit each member to attend. A quorum of the board consists
202202 20 of a majority of the appointed members.
203203 21 (c) Meetings of the commission may be held pursuant to written
204204 22 waiver of notice signed by all the members of the commission. The
205205 23 secretary shall keep a record of all proceedings at meetings and of
206206 24 the vote taken on each act or transaction of the commission. A
207207 25 majority vote of all members is required to bind the commission.
208208 26 Chapter 4. Additional Powers and Duties of the Commission on
209209 27 Independent Electrical Contractors
210210 28 Sec. 1. The commission may negotiate reciprocal agreements
211211 29 with other states, the District of Columbia, or the territories of the
212212 30 United States that require standards for licensure, registration, or
213213 31 certification that the commission determines are at least as
214214 32 stringent as the requirements of this article.
215215 33 Sec. 2. The commission shall investigate and resolve complaints
216216 34 filed under IC 25-20.4-7-2.
217217 35 Chapter 5. Statewide License for Independent Electrical
218218 36 Contractors
219219 37 Sec. 1. An individual satisfying the requirements of section 2 of
220220 38 this chapter may apply to the commission for a statewide license on
221221 39 a form and in the manner prescribed by the commission.
222222 40 Sec. 2. Except as provided in section 4 of this chapter, an
223223 41 applicant for a statewide license must:
224224 42 (1) be at least twenty-one (21) years of age;
225225 2022 IN 395—LS 7125/DI 92 6
226226 1 (2) provide proof of liability insurance in the amount of at
227227 2 least five thousand dollars ($5,000);
228228 3 (3) pass a standardized and nationally recognized electrical
229229 4 assessment examination that has been:
230230 5 (A) created and administered by a third party; and
231231 6 (B) approved by the commission after determining that the
232232 7 examination meets national industry standards;
233233 8 (4) pay the costs of taking an examination required by
234234 9 subdivision (3); and
235235 10 (5) have:
236236 11 (A) completed twelve thousand (12,000) verifiable hours of
237237 12 installing equipment and associated wiring;
238238 13 (B) completed ten thousand (10,000) verifiable hours of
239239 14 installing equipment and associated wiring and received an
240240 15 electrical journeyman certificate from a United States
241241 16 Department of Labor approved electrical apprenticeship
242242 17 program;
243243 18 (C) completed eight thousand (8,000) verifiable hours of
244244 19 installing equipment and associated wiring and received
245245 20 and associate degree from a state accredited program; or
246246 21 (D) completed four thousand (4,000) verifiable hours of
247247 22 supervising the installation of equipment and associated
248248 23 wiring and received a four (4) year degree in electrical
249249 24 engineering.
250250 25 Sec. 3.The commission shall issue a statewide license to an
251251 26 applicant who satisfies the requirements of this article.
252252 27 Sec. 4. (a) This section applies to an electrical contractor who:
253253 28 (1) holds an electrical contractor license issued by a political
254254 29 subdivision before January 1, 2023;
255255 30 (2) has passed a standardized and nationally accredited
256256 31 written electrical assessment examination that is based on the
257257 32 national electrical code; and
258258 33 (3) has completed twelve thousand (12,000) verifiable hours
259259 34 of practical experience.
260260 35 (b) If an electrical contractor described in subsection (a) applies
261261 36 for a statewide license, the commission shall issue a statewide
262262 37 license to the electrical contractor.
263263 38 Sec. 5. Subject to IC 25-20.4-6-1, holding a statewide license
264264 39 allows an electrical contractor to work in any political subdivision
265265 40 requiring electrical contractors to hold a locally issued license.
266266 41 Sec. 6. A statewide license is not required for an electrical
267267 42 contractor to work in a political subdivision that does not require
268268 2022 IN 395—LS 7125/DI 92 7
269269 1 an electrical contractor to hold a locally issued license.
270270 2 Sec. 7. A statewide license is valid for three (3) years and may be
271271 3 renewed by submitting a renewal form prescribed by the
272272 4 commission and paying a renewal fee determined by the
273273 5 commission.
274274 6 Sec. 8. The commission shall mail a renewal form to the last
275275 7 known address of a licensee at least sixty (60) days before date that
276276 8 the licensee's statewide license expires. A licensee must:
277277 9 (1) complete and submit the renewal form; and
278278 10 (2) pay the renewal fee;
279279 11 at least thirty (30) days before the date that the licensee's statewide
280280 12 license expires.
281281 13 Sec. 9. If a licensee does not submit the renewal form and
282282 14 renewal fee required by section 8 of this chapter before the date
283283 15 that the licensee's statewide license expires, the commission shall
284284 16 declare the licensee's statewide license inactive. If a person's
285285 17 statewide license is declared inactive, the person may not engage in
286286 18 electrical contracting until the person's statewide license is
287287 19 reinstated under section 10 of this chapter.
288288 20 Sec. 10. A person may petition the commission on a form
289289 21 prescribed by the commission for an order reinstating the person's
290290 22 statewide license. The commission shall reinstate the person's
291291 23 statewide license if:
292292 24 (1) the petition is submitted not more than two (2) years after
293293 25 the date that the person's statewide license was declared
294294 26 inactive;
295295 27 (2) the commission determines that the person is otherwise
296296 28 qualified to hold a statewide license; and
297297 29 (3) the person pays the commission the renewal fee charged
298298 30 under section 7 of this chapter.
299299 31 Sec. 11. The commission may grant inactive status to a person
300300 32 holding a statewide license if the person does not:
301301 33 (1) hold himself or herself out as holding a statewide license;
302302 34 and
303303 35 (2) maintain any continuing competency requirements
304304 36 established by the commission or otherwise required of an
305305 37 electrical contractor.
306306 38 Sec. 12. (a) The commission may:
307307 39 (1) refuse to issue or renew; or
308308 40 (2) suspend;
309309 41 a statewide license for a cause specified in subsection (c).
310310 42 (b) The commission shall notify an applicant or licensee in
311311 2022 IN 395—LS 7125/DI 92 8
312312 1 writing of the reasons for taking an action described in subsection
313313 2 (a). The commission shall inform the applicant or licensee of the
314314 3 person's right to appeal the action in the manner prescribed by this
315315 4 title.
316316 5 (c) The commission may discipline a licensee, or any person who
317317 6 has failed to renew or has surrendered a statewide license, for one
318318 7 (1) or more of the following causes:
319319 8 (1) A conviction or a plea of nolo contendere in a state or
320320 9 federal court for an offense:
321321 10 (A) reasonably related to the qualifications, functions, or
322322 11 duties of a licensee or other person regulated under this
323323 12 article; or
324324 13 (B) of which fraud, dishonesty, or an act of violence is an
325325 14 essential element.
326326 15 (2) The use of fraud, deception, misrepresentation, or bribery
327327 16 to obtain a statewide license or in obtaining permission to take
328328 17 an examination under this article.
329329 18 (3) Obtaining or attempting to obtain any fee, charge, tuition,
330330 19 or other compensation by fraud, deception, or
331331 20 misrepresentation.
332332 21 (4) Incompetence, misconduct, gross negligence, fraud,
333333 22 misrepresentation, or dishonesty in the performance of the
334334 23 functions and duties of any profession regulated under this
335335 24 article.
336336 25 (5) Violating, or assisting or enabling another person to
337337 26 violate, this article or a rule adopted under this article.
338338 27 (6) Impersonating a licensee or, in the case of a licensee,
339339 28 allowing another person to use the licensee's statewide license.
340340 29 (7) An adjudication that the individual is:
341341 30 (A) an incapacitated person (as defined by IC 29-3-1-7.5);
342342 31 (B) mentally ill and either dangerous or gravely disabled
343343 32 resulting in an order that the individual be involuntarily
344344 33 detained or committed under IC 12-26-4, IC 12-26-5,
345345 34 IC 12-26-6, or IC 12-26-7;
346346 35 (C) not responsible for a crime by reason of insanity under
347347 36 IC 35-36-3-4; or
348348 37 (D) incompetent to stand trial under IC 35-36-3-1.
349349 38 (8) Assisting or enabling any person to practice or offer to
350350 39 practice a profession licensed or regulated under this article
351351 40 while knowing that the person receiving the assistance is not
352352 41 permitted to practice a profession licensed or regulated under
353353 42 this article.
354354 2022 IN 395—LS 7125/DI 92 9
355355 1 (9) Possessing a license, certificate of registration, or permit
356356 2 issued to the person under a material mistake of fact.
357357 3 Sec. 13. IC 25-1-7 applies to a complaint against a licensee.
358358 4 Sec. 14. An individual whose license is revoked must wait at
359359 5 least one (1) year after the date of the revocation before applying
360360 6 for a new license under this article. The commission may issue a
361361 7 new license to an applicant at its discretion after finding that the
362362 8 applicant has fulfilled any obligation imposed upon the applicant
363363 9 with respect to the revoked license.
364364 10 Sec. 15. (a) The commission shall publish the following on the
365365 11 commission's Internet web site:
366366 12 (1) A searchable data base of all licensees holding a statewide
367367 13 license.
368368 14 (2) A list of ongoing discipline actions against licensees.
369369 15 (3) The procedure for filing a complaint against a licensee.
370370 16 (b) The commission shall update the information published
371371 17 under subsection (a) each week.
372372 18 Chapter 6. Miscellaneous Requirements of Persons Engaged in
373373 19 Electrical Contracting
374374 20 Sec. 1. If a political subdivision requires an electrical contractor
375375 21 to post a bond before performing work in the political subdivision,
376376 22 an electrical contractor holding a statewide license shall post a
377377 23 bond in the required amount before performing work in the
378378 24 political subdivision.
379379 25 Sec. 2. A person engaged in electrical contracting subject to this
380380 26 article shall employ at least one (1) electrical contractor holding a
381381 27 statewide license in a supervisory position. An electrical contractor
382382 28 may not be employed by more than one (1) person in compliance
383383 29 with this section at one time.
384384 30 Sec. 3. If a licensee transfers employment from one (1) company
385385 31 to another, the licensee must clear all permits on the licensee's
386386 32 statewide license. The licensee shall notify the commission of the
387387 33 licensee's intent to transfer employment and any current active
388388 34 permits on the licensee's statewide license before the date of the
389389 35 transfer. The commission shall notify by electronic mail the
390390 36 affected political subdivisions of the licensee's status. For purposes
391391 37 of this section, a permit is considered cleared if the affected
392392 38 political subdivision does not respond to the commission within
393393 39 seventy-two (72) hours of the notice sent by electronic mail.
394394 40 Chapter 7. Licensing of Electrical Contractors by Political
395395 41 Subdivisions
396396 42 Sec. 1. This article does not prohibit a political subdivision from
397397 2022 IN 395—LS 7125/DI 92 10
398398 1 requiring electrical contractors performing work in the political
399399 2 subdivision to hold a license issued by the political subdivision.
400400 3 However, this article requires a political subdivision to recognize
401401 4 and honor the statewide license. A political subdivision must accept
402402 5 the statewide license in lieu of a locally issued license for purposes
403403 6 of authorizing an electrical contractor to perform work or
404404 7 obtaining necessary permits for work performed in the political
405405 8 subdivision.
406406 9 Sec. 2. If a political subdivision does not honor and recognize the
407407 10 statewide license in the manner required by section 1 of this
408408 11 chapter, the aggrieved licensee may file a complaint with the
409409 12 commission on a form and in the manner prescribed by the
410410 13 commission.
411411 14 Sec. 3. The commission shall investigate complaints filed under
412412 15 section 2 of this chapter.
413413 16 Sec. 4. (a) If the commission finds that a political subdivision has
414414 17 failed to honor and recognize a statewide license in the manner
415415 18 required by section 1 of this chapter, the commission shall notify
416416 19 the political subdivision of its finding and that the political
417417 20 subdivision has thirty (30) days after the date of the notice to
418418 21 correct the situation by recognizing and honoring the statewide
419419 22 license.
420420 23 (b) If the political subdivision does not recognize and honor an
421421 24 electrical contractor's statewide license within the thirty (30) day
422422 25 period required under subsection (a), the commission shall penalize
423423 26 the political subdivision by directing the auditor of state to
424424 27 intercept an amount equal to one percent (1%) of the amount of
425425 28 local income tax revenue allocated to the political subdivision in the
426426 29 following calendar month under IC 6-3.6-9. The auditor of state
427427 30 shall retain the intercepted amount in escrow for the political
428428 31 subdivision under IC 6-3.6-9-20 until the commission notifies the
429429 32 auditor of state that the political subdivision is in compliance with
430430 33 this chapter and is entitled to release and receipt of the intercepted
431431 34 amount.
432432 35 Sec. 5. A permitting authority of a political subdivision may
433433 36 suspend a licensee's work in the political subdivision for not more
434434 37 than thirty (30) days while a complaint is being forwarded to the
435435 38 commission under IC 25-20.4-5.
436436 2022 IN 395—LS 7125/DI 92